Even as they evaluate provisioning needs internally, lenders would ask the Reserve Bank of India (RBI) for greater clarification on the proposed anticipated credit loss (ECL) framework.
The RBI published a discussion paper on January 16 about banks’ transition from the incurred-loss methodology to the ECL model.
According to RBI, this would improve the banking system’s resilience and lead to revisions in the current loan-loss criteria.
This news was written by Ms. Pujari Dharani, Research Assistant, All India Legal Forum.
ALL INDIA LEGAL FORUM 